♥ Still waiting on LGC, Candor votes to buy land

As published in the Courier-Tribune on September 12, 2012

By Hugh Martin

biscoewriter@yahoo.com

CANDOR — Another delay by the N.C. Local Government Commission (LGC) to act on the Town of Candor’s request to borrow funds from a local bank has the town’s management consultant a bit miffed, but the Board of Commissioners gave their approval to purchase land in anticipation of approval from the LGC.

In August, the board decided to pursue permission from the LGC to borrow $70,000 from low bidder BB&T Bank to purchase a tract of land on the northeast side of Cole Road and Vivian Street, just off North Main Street. The board hopes to build a new fire department complex on the site.

Management Consultant Ron Niland of All America Associates and Town Clerk Tammy Kellis met with LGC officials in June to discuss the town’s financial ability to borrow the funds. Niland said in August that LGC officials had told him that the request would be addressed at a meeting on Sept. 4.

Niland urged the commissioners to approve the request despite objections from some town citizens who raised concerns about the town’s ability to spend the money and the opinion that the location was not suitable for a fire department.

Niland told board members that the current owner of the property, Edwards Timber Co. of Marshville, had been very patient with the town. He said that Edward’s representative, Jason Lefler, had requested that the purchase be closed by Sept. 10.

Niland told the board that it would be “embarrassing” if the town were not to agree to buy the property as requested by Edwards.

“It’s time for us to either put up or tell them we’re not interested,” Niland said.

The town was notified by the LGC that the Sept. 4 meeting had been postponed until Sept. 11 due to the Labor Day observance. Niland said that LGC officials had then called at noon on Sept. 10 to request more information from the town before 5 p.m. that afternoon.

Niland said the request would probably not be acted upon by the LGC until their meeting in October, but “we can’t put this off until October.”

Niland said the he would stake his reputation on his feeling that the LGC would approve the town’s request.

Candor resident George Myers asked from the audience, “What if it (LGC) doesn’t (approve the request)?

“I know my business,” Niland answered. “I know what we’ve got.”

With the requested closing date on the property now passed, Niland expressed his frustration with the LGC.

“These questions from the LGC are just silly games,” he told the board. “They don’t know what they’re looking at.”

Niland suggested that the board approve purchasing the property with money from the town’s fund balance, of which the amount has not been clearly stated, and repay the fund balance with the money that the town hopes to borrow. He told the board that, if the loan was not approved, “the town didn’t have to have a bank loan.”

Niland also expressed his dissatisfaction with the town’s auditor, Maxton McDowell of Asheboro, for not having a clear fund balance total.

McDowell didn’t get the financial reports to the town in 2011 as he was contracted to do. Niland said he would get the fund balance total from the auditor.

The LGC requires that municipalities maintain a minimum fund balance of eight percent of their yearly revenues. Niland said that he didn’t want it to be that low.

Niland asked the board to authorize him to go ahead with the purchase from the fund balance and promised to take no action if the purchase would pull the fund balance below 35 percent. That action would allow the property to be closed on by the end of September.

Former Mayor Becky Williams stood up and told Niland that he should not have let the situation get to this point.

“It’s LGC’s fault,” Niland said. “We went to them in June.”

Commissioner Rob Martin asked if the town could sit down with the landowners and give them $5,000 in earnest money to let them know the town is serious about the purchase.

Niland said if the loan was not approved, the town would lose the $5,000.

“What’s wrong with meeting with the landowners tomorrow?” Williams said. “You can call a special meeting (to consider the LGC action) and be in better condition than just guessing at it.”

Niland said he was not going to let the town get in trouble. “Not on my watch.”

The board voted to allow Niland to take the action that he requested.